In an op-ed that ran in the Houston Chronicle’s Fuel Fix on Monday, CEA President David Holt wrote about the nation’s energy resurgence and the need for math, science, and technology education to address a shortage of skilled workers. The Society of Manufacturing Engineers predicts that the number of unfilled jobs in the energy and manufacturing sector could reach 3 million by 2015. There are programs currently in place that can be emulated to ensure that Americans can benefit from this opportunity. Expanding STEM education in higher education is part of the equation and capturing a student’s interest in energy and the sciences at a younger age are critical. CEA is committed to these goals through programs such as Energy Day. It is imperative that leaders in the energy industry, the nation’s universities and community colleges, and governments at all levels help prepare our citizens for the opportunities ahead.
CEA: Alaska’s Offer to Fund Energy Exploration is Opportunity for Collaboration:
In a press release issued on Wednesday, CEA applauded the State of Alaska’s announcement that it would split the cost of assessing the resource potential of the Arctic National Wildlife Refuge 1002 area, calling it a clarion example of how the state and federal government can coordinate to the benefit of the energy consumer. Earlier last week, Alaska Governor Sean Parnell and Alaska Natural Resources Commissioner Dan Sullivan announced that the State of Alaska would fund up to $50 million to conduct an Oil & Gas Resource Evaluation & Exploration Proposal for the ANWR 1002 Area. CEA President David Holt stated in part that “[a] coordinated effort between Alaska and the U.S. Department of Interior will give all interests a clear view of the facts,” adding that “[g]ood information regarding energy resource potential can ensure policy makers strike a productive balance for development and conservation.”
CEA On E&E TV: Holt Addresses Offshore Development, Keystone XL, Energy Self-Sufficiency, and RFS
In an E&E TV “OnPoint” interview that aired on Monday, CEA President David Holt discussed the interest governors have in learning more about energy resources in federal waters adjacent to their states and the opportunities, jobs, and economic benefits that their development could generate. Holt noted that the governors want to work in partnership with the federal government to allow for the development of these resources in a thoughtful, environmentally responsible way. Addressing other questions, Holt noted that the Keystone XL pipeline project is a game-changer that would safely transport a daily minimum 700,000 barrels of crude to the U.S. and open up a new supply chain for Bakken crude, said energy should be a nonpartisan issue and that an all-of-the-above approach to energy development is needed, and discussed the need for Congress to address issues related to the Renewable Fuel Standard such as the blend wall.
CEA Alaska Issues Call To Action To Oppose Repeal Of Senate Bill 21
CEA-Alaska last week issued a Call To Action urging entities and individuals to go on record supporting a competitive Alaska by opposing the repeal of Senate Bill 21 and rejecting the placement of Senate Bill 21’s repeal on the ballot as a referendum. Alaska’s contribution to the nation’s energy supply has been in decline since the 1980’s. While the resource is there to stem the decline, and perhaps even reverse the trend, the state’s investment climate has not been friendly enough to attract the major investment dollars needed to do so. After extensive review, analysis, and research, Alaska Governor Sean Parnell and the Alaska Legislature passed Senate Bill 21 to reform the state’s tax system to make it more competitive. There is now an organized effort to reverse these reforms, increase taxes, and harm Alaska’s competitive position.
Gas Price Spike at the Holidays
Consumer Energy Alliance President, David Holt, sits down and answers consumer questions. Jerry P. from Oklahoma asked, “Why do gas prices go up every year right before before the holidays? I have seen this for 42 years.”
Notable in Energy News
Oil Shockwaves From U.S. Shale Boom Seen by IEA Ousting OPEC: Bloomberg News on Tuesday reportedon a new International Energy Agency (IEA) assessment that concludes the U.S. shale boom will lead to “shockwaves” through global oil trade over the next 5 years, resulting in benefits for U.S. refiners and the replacement of OPEC as the driver of growth in supplies. According to the IEA medium-term market report, North America will contribute 40% of new supplies through 2018, while OPEC’s share of new supplies will drop to 30%. IEA stated that “[t]he supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15.” According to IEA, U.S. shale resource development is leading to a “chain reaction” in the global transportation, processing, and storage of oil that could accelerate as other nations try to re-create the U.S. boom. IEA predicts world oil demand will rise 6.1 million barrels per day by 2018.
Gasoline Rises Most In Three Months At U.S. Pumps: Bloomberg on Tuesday wrote about new U.S. Energy Information Administration data which finds that average U.S. gasoline prices saw its largest weekly gain since February. Average prices rose 6.5 cents to $3.603 per gallon, with prices rising in every region. The price increase was attributed to higher crude costs and West Coast refinery outages, with the West Coast leading all regions with an average gasoline price of $3.938 per gallon. The least expensive gasoline in the U.S. was on the Gulf Coast, where gasoline prices rose 6.5 cents to an average $3.364 per gallon, and the smallest increase in gasoline prices occurred on the East Coast, where gasoline prices rose 3.2 cents to an average $3.484 per gallon. Stillwater Associates President David Hackett said that “[w]ith the normal lag from crude oil to retail, I expect retail is now responding to higher crude oil prices as well.”
Shale-Related Jobs Expected To Double In Nueces Co.: Corpus Christi, TX NBC affiliate KRIS-TV on Tuesday ran a story about a presentation delivered by University of Texas-San Antonio (UTSA) representatives highlighting the impact of the Eagle Ford Shale boom on the local economy. Eagle Ford activity brought $8.5 billion in revenue to Nueces County in 2012 and has generated 6,699 jobs in the county to date. According to UTSA, jobs in Nueces County could double to 11,500 in 2022. Experts predict that the boom could generate $19.8 billion by 2022 in Nueces County alone. The oil and gas boom has impacted businesses of all sizes, with job growth occurring in companies both directly and indirectly involved with oil and gas production. Production Equipment Company of South Texas Manager Ray Perez reports that since Eagle Ford Shale activity commenced, “[t]here’s a lot more companies that are drilling wells out there” and “[i]t’s increased our business by probably 30-40%.”
Better Batteries Could Revolutionize Solar, Wind Power: USA Today recently reported on intensifying efforts to build more powerful, longer-lasting batteries for cars, homes, and utilities. With the ability to store solar and wind power, batteries are key to providing a continuous supply of renewable energy. American Vanadium President Bill Radvak says call it “the dawn of the energy-storage age,” with storage being a potential “holy grail” for renewable energy. An IMS Research report released in early May forecasts that the global solar power storage market will rise from under $200 million in 2012 to $19 billion by 2017, with falling renewable energy prices cited as one component driving the surge. Challenges ahead include cost and safety, leading companies, universities, and others to pursue various chemical mixes and the potential nano-sizing of chemical elements to increase efficiency. Battery uses include grid-scale projects, taking homes off the grid, powering vehicles, and providing back-up energy.
Getting to Yes
Washington Must Find a Way to Say ‘Yes’ to Offshore Exploration
by Michael Whatley,Consumer Energy Alliance 5/15/2013
For supporters of expanded offshore energy production, the Offshore Technology Conference presents a unique opportunity to discuss the challenges and opportunities associated with expanding production on America’s Outer Continental Shelf. OTC represents the innovative and pioneering spirit of the energy industry and highlights the importance of leveraging our offshore resources. Federal policies must support that exploration, not impede it.
We know America’s OCS contains a vast resource base, and we know the industry has the technical expertise and know-how to tap it. The U.S. Bureau of Ocean Energy Management estimates that as much as 90 billion barrels of oil and 398 trillion cubic feet of natural gas exist offshore from Alaska to the Atlantic, to the Gulf of Mexico and the West Coast. For perspective, the U.S. trucking industry – one of the largest consumers of gasoline and diesel – could fuel every single one of its trucks every single day for 101 years with the oil resources available in the U.S. Outer Continental Shelf.
Unfortunately, the future ability to tap these resources remains murky. Under the current five year plan, much of the OCS remains off-limits to development. Enacted last year, current leasing plans block development in the eastern Gulf of Mexico and the mid and South Atlantic regions for the next five years, despite bipartisan support for the reinstatement of lease sales in these regions. Indeed, at OTC a panel of 8 coastal governors called for expansion of offshore lease sales as a way to spur economic expansion in their states.
Much of the Atlantic OCS contains recoverable sources of oil and natural gas, but so little exploration has been allowed that many states lack hard evidence of their resource base. And many states are now clamoring for better information. Leaders in South Carolina are calling for the federal government to allow them the ability to conduct seismic surveys off the coast as a way to at least understand the size of their resource base. At OTC, Governor Nikki Haley said her state wants to ability to decide its own fate, and that they have the expertise to properly regulate the industry to insure safe production.
Others in South Carolina see potential offshore revenues as a way to bolster the states investments in infrastructure improvements. Leasing revenues could help the state pay for much needed road construction and upgrades, and help to make necessary upgrades to the Port of Charleston, further brightening the prospects for maritime economic expansion.
Readers of this publication know of the recent difficulties with arctic exploration off Alaska’s coasts. More than one company has pulled out of the arctic, not because of the lack of skill, but because of “regulatory uncertainty”. Reassuring shareholders that the difficulties of arctic production are worth the risk is difficult when Washington cannot seem to keep a consistent playbook. Meanwhile, Russia and Norway are moving to expand their Arctic drilling capabilities, shifting investment and expertise away from American interests and putting us behind the curve in developing our Arctic resources.
Policy makers in Washington should know that finding ways to say “yes” to expanded production on the OCS does not mean they are shirking their responsibilities to provide oversight. Building on our undeniable success and technological advancement in developing our onshore resources, we should be looking to the sea to help supply our nation with domestic oil and natural gas in a safe, reliable and responsible manner. Regulators should approach the challenges with the same optimism and dynamism as attendees of the OTC.
With a renewed focus on the OCS and the flexibility to allow states to determine their own fate, Washington could help usher in yet another energy boom. And with it, another round of solid and sustainable economic expansion.
Cross posted from: URL: http://www.rigzone.com/news/oil_gas/a/126501/Washington_Must_Find_a_Way_to_Say_Yes_to_Offshore_Exploration
B-List Celebrities Won’t Sway Commander in Chief on KXL
Houston, TX – Consumer Energy Alliance Executive VP Michael Whatley reacted with skepticism to reports B-List Hollywood celebrities were pleading with the president to reject a pipeline touted as the safest ever built.
“I am confident our commander in chief won’t be swayed by a bunch of B-list celebrities, who have little to no substantive understanding of pipelines, energy development or balancing environmental protection with economic growth. What is notable about the KXL review process is the thoroughness the government has reviewed TransCanada’s application – you could say the process has had a strong regard for detail: Over 1,700 days; 12,000 pages of reports, 4 separate environmental reviews.”
Over 300,000 American citizens who sent their support for the KXL pipeline to the U.S. State Department.
Energy policies must support innovation
Energy policies must support innovation
By David Holt
May 6, 2013
Updated: May 7, 2013 at 1:59 p.m.
In the United States, economic growth and opportunity have always been grounded in our technical prowess, our desire to innovate and our ability to effectively use our vast natural resources. From our advancement of Internet and information technology anchored in Silicon Valley, to our expansion of oil and gas drilling technologies here in Texas, our nation’s potential to expand into new frontiers is limitless. Federal policies must support that exploration, not impede it.
This spirit of innovation and scientific advancement is what underpins the proceedings at this week’s Offshore Technology Conference here in Houston. Pioneers from all over the world are here to discuss new ways of tapping the vast pool of natural resources that rest beneath the waves all over the globe.
While remarkable advances in onshore technology have opened up vast fields of oil and natural gas once thought to be unreachable, the future of American energy production lies offshore, not just on land.
The U.S. Bureau of Ocean Energy Management estimates that as much as 90 billion barrels of oil and 398 trillion cubic feet of natural gas exist offshore from Alaska to the Atlantic, to the Gulf of Mexico and the West Coast. For perspective, the U.S. trucking industry – one of the largest consumers of gasoline and diesel – could fuel every single one of its trucks every single day for 101 years with the oil resources available in the U.S. Outer Continental Shelf.
In Texas, reliable oil and natural gas directly benefit growth and job creation in every sector of our economy – from computer fabricators in Austin, to the chemical plants in Beaumont, to the shipyards in Corpus Christi, to our world-renowned medical center in Houston.
Unfortunately, much of the OCS remains off-limits to development, and the outlook for future development of these areas remains murky. Current federal leasing plans, enacted in 2012, block development in the eastern Gulf of Mexico and the mid and South Atlantic regions for the next five years, despite bipartisan support for the reinstatement of lease sales in these regions. Much of the Atlantic OCS contains recoverable sources of oil and natural gas, but so little exploration has been allowed that many states lack hard evidence of their resource base. And many states are now clamoring for better information.
At a forum last week in South Carolina, a chorus of citizens, business leaders, industry leaders, and state, local and national policy makers called on the federal government to expedite permitting for seismic analysis of the seabed off South Carolina’s coastline. They understand what offshore development could mean for the South Carolina economy and for the state’s infrastructure development. But first, Washington must allow them to survey what they have, if only to prudently plan for the state’s economic future.
In Alaska, where a vast pool of oil and natural gas resources is not only surveyed but accessible, federal policy also is halting development. Several companies have temporarily suspended exploration offshore Alaska due to regulatory uncertainty.
Meanwhile, Russia and Norway are moving to expand their Arctic drilling capabilities, shifting investment and expertise away from American interests and putting us behind the curve in developing our Arctic resources.
At OTC on Monday, a group of eight coastal governors, including Gov. Rick Perry, called for an improved dialogue with the federal government to allow expanded access to U.S. waters. They noted that 85 percent of the nation’s OCS is currently off-limits. They also urged federal policymakers to better manage regulatory standards for offshore development to provide increased certainty and more efficient timelines for operators. Finally, the governors endorsed legislative efforts to expand oil and gas revenue-sharing to all coastal states, underscoring the importance of such revenues to state coastal management and infrastructure development programs.
Policymakers should take their cues from the can-do spirit of OTC and apply that same dynamism to fashioning reasonable offshore regulations. Building on our undeniable success and technological advancement in developing our onshore resources, we should be looking to the sea to help supply our nation with domestic oil and natural gas in a safe, reliable and responsible manner. With a renewed focus on the OCS and the flexibility to allow states to determine their own fate, Washington could help usher in the next energy boom.
The future of American energy production is offshore, just as much as it’s onshore, and it’s time our federal policymakers enable this growth
Holt is President of the Consumer Energy Alliance, headquartered in Houston.
Cross posted from http://www.chron.com/opinion/outlook/article/Reacting-to-a-new-world-reality-4492751.php
Energy group warns EPA may use ‘sue-and-settle’ to cap emissions
Energy group warns EPA may use ‘sue-and-settle’ to cap emissions (Washington Examiner)
“While EPA claims to have no intention of imposing an LCFS at this time, there is still reason to be vigilant, as EPA has established a track record of using ‘sue-and-settle’ as a means of implementing unpopular policies behind closed doors,” Consumer Energy Alliance Vice President Michael Whatley said Monday.
Such a lawsuit could allow the EPA to insist it has no plans to implement cap and trade, and still make the rules as part of a settlement without congressional approval, CEA said.
Cap-and-trade is popular with environmental groups, who say the cap on emissions is a cost-effective way to reduce pollution. But in practice, the economic impact of the policy is “devastating,” CEA said.
“Numerous independent studies have shown that a cap-and-trade program on transportation fuels would impose significant pain at the pump, and that is the last thing American families need right now,” the group said in Monday’s statement.
